Foreclosure Processing

Law Firm Verifies Complicated Property Statuses to Simplify Court Reporting

When a loan is secured by multiple parcels and/or multiple deeds of trust, special care must be taken to ensure that all of the documents secure the properties. This is to verify the status of each property. We were engaged by a law firm representing a bankruptcy trustee for a debtor whose main asset was a multimillion-dollar note and deed of trust. The deed of trust secured 20 parcels of vacant land in Southern California that had been in the process of subdivision for residential housing before the borrower defaulted. We worked hand-in-hand with the attorneys to conduct a deep dive review into the trustee’s sale guarantee, which revealed that set parcels were tax delinquent (at different times) and that multiple parcels had been partially transferred to third parties. We created flow charts and profiles for each parcel so that the law firm could easily review the properties and report back to the bankruptcy trustee and the court. Our Key Solutions:

• Hand-In-Hand Engagement with Attorneys
• Extensive TSG, Map, and Underlying Document Review
• Parcel Flow Chart and Profile Creation
• Process Streamlining

Reconveyances

Lender Clears Backlog of Recorded Documents with Streamlined Processes

An important task in loan servicing is to ensure that reconveyances and satisfactions of mortgage are sent to escrow or the appropriate county recorder in a timely manner. This removes the security instrument from the public record, and failure to do so can expose the lender or servicer to a lawsuit for both statutory penalties and/or actual damages suffered. One of our clients services a significant portfolio of loans nationwide. Due to staffing issues, the client had fallen behind on processing its reconveyances and satisfactions of mortgage. They contacted TLS to discuss what, if anything, we could do to help them. After assessing our client’s needs, we quickly cleared the backlog of reconveyances and satisfactions of mortgage by creating a cost-effective, interactive process allowing the client to simply upload a copy of the recorded document. Our team continues to assist the client as a key provider for their reconveyance department. We prepare the appropriate documents for the client’s signature and arrange recordings of the termination documents. Our Key Solutions:

• Implementation of Interactive Processes
• Document Preparation
• Arrangement of Termination Recording
• Ongoing Assistance

UCC Sales

Lender’s Attorney Receives Assistance on Conducting Successful UCC Sale

Oftentimes, lenders who have defaulted loans secured by personal property turn to their attorneys to conduct a secured property sale governed by the Uniform Commercial Code (UCC). Some of these attorneys are well-versed in the process while others have limited experience. An attorney representing a lender who loaned money secured by the furniture, fixtures, and equipment had contacted our team at TLS to assist with foreclosing on a borrower who was in default and who had, essentially, disappeared. The attorney has a vibrant practice on the origination side of transactions but very limited experience on the default side. We were engaged by the attorney to review the documentation and conduct the UCC Sale. We worked hand-in-hand with the attorney to provide a cost-effective solution and ensure that the UCC Sale was conducted in accordance with the laws of the state where the property was located. Under the supervision of the attorney, we sent out the appropriate notices, arranged publication of the notice of sale, and conducted the sale in the attorney’s office where the property was sold to a third-party. Our Key Solutions:

• Documentation Review
• Delivery of Notices
• Notice of Sale Publication
• Finalization of UCC Sale

Education

Lender Discovers Defective Notices During Pre-Foreclosure Presentation

Prior to starting a foreclosure, both the state and federal governments have enacted pre-foreclosure procedures with which either the lender or servicer must comply. Doing so properly is vital to ensure that borrowers are given the appropriate information at the appropriate times and that lenders or servicers are compliant in order to avoid fines and/or penalties.

A small institutional lender client in California asked us to conduct a refresher workshop for pre-foreclosure activities and the foreclosure process. We prepared a detailed overview of the requirements and timing of the notices required by the Dodd-Frank Act as well as the California Homeowners’ Bill of Rights.

During the presentation, it was discovered that the lender’s notices and its counsel did not comply with the information requirements of Dodd-Frank. We worked with the lender to update their compliance procedures to ensure that they were in alignment with with both federal and state laws. We helped our client avoid serious penalties from the government and exposure to lawsuits by borrowers. The potential cost savings to the lender is incalculable.

Our Key Solutions:

• Pre-Foreclosure Process Education
• Notice Review
• Federal/State Law Compliance
• Penalty Avoidance